Latest News:  
Beijing   Overcast/Light rain    14 / 7 ℃  City Forecast


Reforms to give more weight to capital

By Chen Jia (China Daily)

08:58, November 30, 2012

The next significant opportunity in China's financial reform is promoting capital exports instead of imports, and raising the value of financial and monetary assets, said Charles Li, CEO of Hong Kong Exchanges and Clearing Ltd.

The target of this "capital going-out" process is strengthening the global influence of the yuan, rather than simply seeking capital returns, Li said on Thursday at an economic forum hosted by Caijing magazine.

"It will be the third wave of China's opening-up after the surge of foreign trade and overseas mergers and acquisitions," Li said.

Large capital relief is expected on the premise of the capital market's opening as well as exchange rate reform, he said. Capital relief can also enhance yuan-settled cross-border trade and facilitate overseas M&A biddings.

"The first stage of renminbi internationalization has started, but it seems the impetus is not strong enough now to push it to the next level," Li said.

One of the 12 most expected reform areas voted in a survey is achieving yuan-free convertibility in capital items, according to Qin Xiao, the former chairman of China Merchants Group and now the chairman of the board of Boyuan Foundation, an organization focusing on economic and social research.

"An increasing number of people now have confidence about the capital opening, and they though it won't take too much time," Qin said.

Ma Jun, the managing director and chief economist for China of Deutsche Bank, also was optimistic. "We have made a quantitative analysis, and the result showed that opening the capital system will have less effect on the net capital flow and renminbi exchange rate than they worried about," Ma said.

【1】 【2】

We recommend:

World's highest-altitude civilian airport to start operations

Global sales of Samsung's Galaxy Note 2 tops 5 mln mark

China to open Beijing-Guangzhou high-speed rail route slows

China Telecom starts iPhone 5 pre-orders

China's MA700 to take flight in 2016

Self-owned brands account for 11% of exports

HK's MTR buys first China-made locomotives

Staff members of bus company sort notes, coins

Construction of 6th Yellow River bridge underway


Leave your comment0 comments

  1. Name


Selections for you

  1. Anti-aircraft artillery regiment in training

  2. Chinese navy fleet enters West Pacific

  3. Christmas is around the corner

  4. TCM preventive treatment of discease

  5. Death toll hits 11 in NE China capsizing

  6. China's savings rate world's highest

  7. Sexy models pose for 2013 FC Barcelona Calendar

  8. Belgian Farmers Spray Milk At Police In Protest

Most Popular


  1. Obama's big test: averting "fiscal cliff"
  2. Commentary: Future money uncertainties
  3. Social progress in tolerance to ‘Nail Household’
  4. Preventing abuse of power in physical exam
  5. Will China run out of water by 2030?
  6. What’s behind pupils' bread and milk lunch?
  7. China's solar panel seeking revival at home
  8. Currency swaps to take on bigger role
  9. China's rise opportunity, rather than threat
  10. China's economy picking up steam

What’s happening in China

Memorial service held for China's fighter jet production head

  1. Official probed for drug gang links
  2. Change your name to 'Liu Xuemei'
  3. Billionaire quits political post
  4. Fired officials aided poachers
  5. Whistle-blower arrested for economic crimes